Modern Utilities Are Changing the Power Game

Adapting to new technologies is the best way forward for utilities.

The utility sector is in the throes of disruption as distributed power generation challenges the tradition utility model. With increased power generation coming from nontraditional sources like rooftop solar, utilities could end up on the short end if revenues do not cover already sunk generation and grid investments. However, two long-term-minded utilities like NRG Energy(NYSE:NRG) and American Electric Power(NYSE:AEP) are making substantial changes to their business model that will enable both companies to focus on customer needs and build a framework to adapt to new technologies.

This segment is from Wednesday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors @TMFEnergy.

Author

Joel is a University of Washington graduate and covers energy and materials for The Motley Fool. Be sure to follow The Motley Fool's energy and materials Twitter for all your energy and materials coverage.
Follow @tmfenergy